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Maine governor pushes 'Business Zones'

The Lowell Sun

Updated:
03/17/2014 07:15:35 AM EDT

Maine Gov. Paul LePage speaks at a news conference where he touted his "Open for Business Zones" proposal, recently in Brunswick, Maine. The Republican governor said the zones will provide tax and energy relief, help businesses train and recruit workers, and give employees the right to opt out of paying union fees. AP Photo

BRUNSWICK, Maine (AP) -- Maine Gov. Paul LePage recently began a push for a proposal that would offer business tax breaks and workers the freedom not to pay labor union fees, heralding it as a way to attract businesses that will pump millions into the economy and create thousands of jobs.

But the proposal to create "Open for Business Zones" faces a tough road in the Legislature that's controlled by Democrats who panned the proposal as an anti-union effort that would mean lower wages for Maine workers.

LePage said Maine's economy is making progress, but that the state must continue on the path toward becoming a partner of the private sector, instead of an adversary.

"Let's work together to attract these companies here," LePage said at the Maine Technology Institute at Brunswick Landing, the former Navy air base that's been redeveloped for business use. "We're starting to see a movement forward. Let's continue it."

The proposal seeks to attract businesses that invest more than $50 million and create at least 1,500 jobs by providing them tax and energy-cost relief, and assistance to help train and recruit workers. They would be "right-to-work" zones, meaning non-union employees wouldn't have to pay fees to negotiate and administer contracts.

Tax incentives would include corporate income tax credits and a sales tax exemption and reimbursement for up to 20 years.

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Companies would also have access to a pool of up to $500 million for development projects and could get reimbursements if their electric rates are higher than the national average.

Under the bill, companies would be encouraged to hire Maine workers and contract with other Maine companies, when possible. Attracting half-dozen large companies to Maine could increase revenue, allowing the state to change the way it taxes residents, LePage said.

But union officials immediately slammed the governor's proposal, first announced in his State of the State address in January, calling it a political stunt that will hurt Maine workers.

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